Venture Investment in Korea reached KRW 13.6 trillion (approximately USD 9.3 billion) in 2025, marking the second-highest annual total on record and underscoring renewed momentum in the country’s startup ecosystem. The Ministry announced the annual figures alongside updated data on fund formation and the status of Korea’s unicorn companies.
The 2025 results represent the first full-year venture investment performance released since the launch of the new administration in June.
Venture Investment Rebounds, Led by Strong Second Half
New venture investment rose by KRW 1.7 trillion year-on-year, a 14% increase compared with 2024. Total deal count reached 8,542 – the highest every recorded.
Investment activity gained pace in the second half of the year. Of the KRW 1.7 trillion increase, approximately KRW 1.4 trillion was concentrated in the latter half of 2025, suggesting improving market confidence and liquidity conditions.
Capital raised through new venture funds totaled KRW 14.3 trillion (approximately USD 9.8 billion), up 34.1% from the previous year. Fundraising in the second half alone reached KRW 7.9 trillion, a 45% increase compared with the same period in 2024.
Private investors accounted for 80% of total commitments. Private-sector contributions increased by 40.5% year-on-year, with particularly strong growth from pension funds and mutual aid associations, whose commitments more than doubled. General corporations and financial institutions also increased their allocations.
The Ministry noted that the pickup in activity during the latter part of the year coincided with interest rate cuts in major economies and reflected growing market confidence in the government’s policy direction toward strengthening venture investment.
Second Shifts: Broader Distribution of Capital
In 2025, the three largest recipient sectors were:
- ICT services (20.8%)
- Bio and healthcare (17.4%)
- Electrical, machinery and equipment (14.6%)
Together, these sectors accounted for 52.8% of total investment. However, the share concentrated in the top three sectors has gradually declined over the past five years, indicating a more diversified allocation of capital.
Bio and healthcare recorded the largest absolute increase in investment, while the gaming sector posted the highest growth rate at 69.4%.
Investment in ICT services declined modestly compared with pandemic-era peaks, reflecting a gradual rebalancing from software- and platform-focused investment toward manufacturing, advanced equipment and other industrial technology segments.
Preference for Later-Stage Firms, with Renewed Focus on Early Investment
Companies established within seven years accounted for 45.6% of total investment, while firms older than seven years attracted 54.4%.
Although investment in early-stage firms (within seven years of founding) rose 11.3% year-on-year to KRW 6.2 trillion, the proportion allocated to more mature companies continued to increase. This trend suggests that investors are placing greater weight on businesses with established growth records.
To strengthen support for early-stage startups, MSS plans to double its Fund of Funds allocation for early-stage investment in 2026. More than KRW 333 billion will be directed toward dedicated early-stage funds, including a KRW 50 billion “entrepreneurship boom fund” focused on startups selected through the government’s national entrepreneurship development platform.
Public fund allocation criteria will also place greater emphasis on early-stage investment performance, with additional incentives for fund managers who actively invest in young companies.
27 Unicorns Reflect a More Technologically Diverse Landscape
As of 2025, Korea counts 27 unicorn companies – unlisted firms that have surpassed a valuation of KRW 1 trillion. On average, these companies reached unicorn status in seven years and eight months.
Four companies newly entered the unicorn ranks in 2025:
- Rebellions (AI semiconductor design)
- FuriosaAI (Ai semiconductor design)
- BENOW (cosmetics manufacturing)
- Galaxy Corporation (AI-driven entertainment technology)
In contrast to earlier waves dominated by consumer-oriented platform businesses, the latest additions reflect a broader technological base, spanning AI semiconductors, data, fintech and cloud computing.
Beyond Investment Volume
Minister Han Seong-sook described the simultaneous increase in venture investment and capital commitments – particularly the larger share of private-sector participation – as an encouraging sign of structural resilience.
She emphasized that the goal extends beyond raising capital totals. The focus, she noted, is to ensure that venture-backed companies scale into globally competitive enterprises capable of driving innovation and contributing sustained vitality to the broader economy.
With stronger capital flows, deeper private participation and a widening sectoral base, 2025 is viewed as marking the early phase of a new, more durable cycle of venture growth in Korea.